"We cannot do anything because those funds were put in the general fund of the commonwealth," said Brion. "They were not put in LCB's bank accounts. So we don't have the ability to give that back to them."

The licenses for "small games of chance" in bars and restaurants became available this year, and the games were expected to bring in more than $150 million annually for the commonwealth.

Lawmakers expected to see about 2,000 licenses issued. But few taverns applied. Tavern owners and state lawmakers criticized the application process for being expensive and cumbersome.